Galdi Green Report 2021

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la nostra storia sostenibile GREEN REPORT 2021 >>

2 2021 / GREEN REPORT

LA NOSTRA STORIA SOSTENIBILE CONTENTS LETTER TO STAKEHOLDERS Our sustainable journey The Galdi Group Galdi’s GOALSGaldiCustomsOurSafetySustainableCommunityEmployeeResearchEnvironmentalLife-longpeopletrainingsustainabilityandInnovationbenefitsengagementsupplychaincertificationssustainablepackagingauthorisationsVillage,aplacetofillFORTHEFUTURE

Galdi approached 2021 with positivity and confidence. We wanted to begin the year with a fresh start, by officially opening the Galdi Village, a place to fill, the new building dedicated to our staff and the local community located right next to the production plant. Along with valuing “connections” and the well-being of our team, we wanted to strengthen our relationships with institutions and the local community, with whom we had only interacted online during the pandemic. As for sustainability, our ongoing efforts have focused on making our manufacturing plants increasingly more efficient, reducing our products’ environmental impact and engaging our employees in the implementation of the UN Sustainable Development Goals. The sixth edition of Galdi’s Green Report illustrates the progress we have made so far, with the goal of bringing all stakeholders together and a keen desire to cope with difficult times as a big team!

4 2021 / GREEN REPORT

Galdino AntonellaCandiottoCandiotto

la nostra storia sostenibile LET’S RESTART WITH AN EVEN STRONGER FOCUS ON QUALITY OF LIFE, EVERYTHINGSUSTAINABILITYRECONNECTINGONWITHOTHERS,PLACINGATTHECOREOFWEDO

2010 OUR SUSTAINABLE JOURNEY The introduction of Lean Production leads to waste reduction and better resource allocation The company analyses the Carbon Footprint and Water Scarcity Footprint of its filling solutions. Reflecting its commitment to sustainability, Galdi publishes the first Sustainability Report 2016 2021 / GREEN REPORT

Galdi updates its Environmental Management System, certified in 2012, and receives certification under the new UNI EN ISO 14001:2015 standard Official opening of the Galdi Village, a place to fill, built to the highest standards in terms of sustainability and occupant wellbeing 2018 2021

8 2021 / GREEN REPORT THE GALDI GROUP MoscowRUSSIA ITALYHeadquarters Wilmington,USA DE SalaMOROCCOAlJadida A Galdi Company

EMPLOYEES A GROUP, A DRIVENGROWINGSTEADILYTEAM,BYSHAREDOBJECTIVES“ 124 14ABROAD CONSOLIDATED202123,9TURNOVER 110ITALY 101520255 MILLION (EUR) Millions 2019 2020 2021

WOMEN MEN 28 96 GALDI’S PEOPLE 2021 / GREEN REPORT

140120100806040200 2019 2020 2021 AdminProductionService EDUCATION GALDI’S PEOPLE DEGREE LEVELS Data as of 31/12/reference year 39% 19% 81% 61% OtherGraduates Bachelor degree Master degree Number employeesof

14 856 Improving and expanding technical expertise in mechanical and software design 422 Soft skills, remotemanagement,HRwork 284 Expanding know-how in digital tools and cybersecurity areas 188 Sales integrateddevelopment,supplychain and corporate sustainability LIFE-LONG TRAINING HOURS 2021 / GREEN REPORT

Learning from experience: in 2021, we renewed our partnership with schools and universities. We strive to foster talent through life-long learning and the acquisition of new skills in innovative and cross-cutting topics. 1 PHD (UNIVERSITY OF PADUA) 2 DISSERTATION INTERNSHIPS 1 Sales and Marketing Intelligence)(subject1departmentTechnicaldepartmentarea:Machine 1 UNDERGRADUATE INTERNSHIP After Sales department 3 APPRENTICESHIPSDUALSCHOOL-WORKTRAINING With students attending Technical Institutes in the Treviso Province TO THRIVE AS A TEAM AND AS A COMMUNITY, WE STRONGLY BELIEVE IN THE IMPORTANCE OF LIFE-LONGHours“LEARNINGoftraining2296in20172413in2018 1450in2019 2584in2020 1750in2021

2021 / GREEN REPORT PV SYSTEM kWh399,766producedkWh308,164usedonsite kWh91,602fedinto the grid ENVIRONMENTAL SUSTAINABILITY avoided135.97CO2renewablekWh551,798boughtfromsources

Energiadolomitienergia.itproveniente dalle centrali idroelettriche delle Dolomiti Utilizziamo solo 100% ENERGIA PULITA

Abbiamo compensato tutta la CO2 prodotta dall’utilizzo di gas naturale Grazie a CO2100%FREE

ENVIRONMENTAL SUSTAINABILITY CO100%2-free gas were compensated by the supplier through environmental projects 70.7 t CO 2

20 2021 / GREEN REPORT -254 m3 Water savings throughandismachineusedof100%thewaterfortestsrecoveredreuseda filtering system Since 2016, we have consistently reduced water usage for our manufacturing plant approximately

ENVIRONMENTAL SUSTAINABILITY thanbottlesfewer25,000Aboutplasticinlessayear Thanks to the installation of a water dispenser

22 2021 / GREEN REPORT 260.9 t mixed2.7%waste99.7%recycledsolid waste 37.27WASTE t Cartons used for testing were recycled and transformed into recycled paper

ENVIRONMENTAL SUSTAINABILITY FSC PAPER Project for more sustainable packaging for sending spare parts to customers ECO-FRIENDLY CARS In 2021, we bought 3 next-generation hybrid cars and 1 full electric car As part of our ongoing effort to eliminate the use of paper for reviewing technical drawings, digital screens were installed in the production departments. 100% HEAT-FREE INKJET PRINTERS • We print on recycled paper only • Energy savings • Better air quality

Treedom is an environmental and social sustainability project. The goal is to plant and grow trees in several African countries, enabling local farmers to start a profitable business that guarantees a source of sustenance and income.

24 2021 / GREEN REPORT Cameroon202trees Kenya53trees TREEDOM-47,110KGSAVEDCO2

ENVIRONMENTAL SUSTAINABILITY Planted trees absorb an amount of CO2 equivalent to the load of 245 trucks. GALDI’S TREES Cocoa Mango Avocado Grevillea

RESEARCH

“KEYINNOVATIONANDAREDRIVERS RESEARCH AND INNOVATION

Galdi collaborates on development projects in the field of microbiology through its in-house start-up, FILL good, which offers top-of-the-class consultancy and expertise in the areas of food safety and sustainability.

Collaborating with research bodies is key to Galdi’s development. The company has always worked with universities and local institutions to share knowledge and foster innovation, particularly in the areas of digitization, IIoT infrastructure development, and food safety.

2021 / GREEN REPORT

FILL GOOD’S CONSULTANCY SERVICES

26

RESEARCH

PARTNERSHIPSBODIES

UNIVERSITÀ DEGLI STUDI DI VERONA mentre in quello interno sono rappresentati alcuni monumenti del centro antico della città (l'Arena, i portici di piazza Erbe, il ponte Pietra, il fiume Adige, la torre dei Lamberti, la porta dei Leoni, la chiesa di San Siro) sigillo non può essere modificato o deformato e va sempre utilizzato in orizzontale e posto a fianco e prima del logotipo.

Logotipo non può essere modificato o deformato e va sempre utilizzato in orizzontale. Sotto il logotipo può trovare spazio l’indicazione delle varie strutture accademiche e amministrative di LeAteneo.indicazioni riferite alle principali casistiche d'uso del logo sono descritte nel manuale di identità visiva che sarà pubblicato entro il mese di Giugno 2016

esterno è riportata la scritta

sigillo, di forma circolare, è previsto in due versioni (monocromatica e a colori). Nel cerchio più

“CA’ OFUNIVERSITYFOSCARI”VENICE

IL LOGOTIPO logotipo "Università di Verona" è un elemento base del sistema di identità visiva di Ateneo e va utilizzato in combinazione con il sigillo (ad eccezione dei casi descritti nel manuale di identità visiva). Il logotipo è stato ridisegnato utilizzando contemporaneamente gli elementi di due font (il lineare "Futura" e il graziato "Garamond") per evidenziare l'idea di un percorso che punta al futuro ma pone l'accento anche sulla tradizione.

OFUNIVERSITYUDINE

OFUNIVERSITYOFUNIVERSITYPADUAVERONA

For model RG270, we adopted for the first time the Eco Design approach, which focuses on the environmental impact during the design stage too. The decision to use this new development approach was based on the outcome of an in-depth analysis we carried out with the University of Padua to appraise the impact of our fillers in terms of Carbon Footprint and Water Scarcity Footprint.

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Making our machines increasingly more efficient is our goal, albeit not the only one! In the development stage, we always consider the solutions that have the least impact on our planet, since efficiency means first and foremost wasting fewer resources.

“SUSTAINABILITY

BEGINS WITH OUR

SYSTEMS!

RESEARCH AND INNOVATION The new packaging machine - for which development ended in 2021 and which was officially launched in early 2022 - raises the standards in terms of consumption and emissions. Thanks to external cleaning and SIP sterilisation systems with pressurised steamRG280Food Waste • No product left in the tank • Delivers ready-for-sale cartons right from the start Lower impact Reduction in chemical usage thanks to SIP sanitisation with pressurised steam Reduced emissions Catalytic converters to reduce hydrogen peroxide emissions in the environment 886m3 Saved water/year

30 2021 / GREEN REPORT DIGITAL SERVICES AND MACHINE INTELLIGENCE Galdi is committed to implementing 4.0 technologies to serve its customers and develop innovative, eco-friendly solutions. Examples include our digital services and the team dedicated to Machine Intelligence. DIGITAL EFFICIENCY HELPS REDUCE: • food waste caused by downtime • environmental impact of repairs • early wear of components • abnormal or irregular consumption levels HIGHER EFFICIENCY, LESS WASTE, LOWER IMPACT THANKS TO “TECHNOLOGIESDIGITAL

RESEARCH AND INNOVATION MaSH Monitoring system that helps reduce downtime and product waste E-Portal Galdi’s spare parts portals for more simplicity, fewer mistakes and less paper TYE Fewer on-site visits thanks to Through Your Eyes, our remote video-assistance service Web-FAT Customers can watch Factory Acceptance Tests live online, without having to come to our headquarters! GALDI’S DIGITAL SERVICES

Galdi participates in the “Family and Work” project promoted by the Veneto Region. A three-year business plan identifies the measures to be adopted for a better work-life balance

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BETTER QUALITY OF LIFE IN- AND OUTSIDE THE WORKPLACE LEADS TO BETTER “PERFORMANCEWORK EMPLOYEE BENEFITS

The implementation of the agenda set out in the business plan leads to the Family Audit Certification, in line with the standard of the Autonomous Province of Trento

2019

2015

2020 2021

Staff members are actively engaged in the company’s ongoing efforts to improve work-life balance

Galdi’s internal project group has gotten bigger, in order to have a wider forum for discussion and debate on future actions and initiatives maintains the Family Audit certification for the second year running. 2022 will mark the third - and last - year of the project

.

Galdi

The Family Audit certification helps balancing work and family life!

34 2021 / GREEN REPORT OUR IDEA OF SUSTAINABILITY SPREADS WITHIN THE COMPANY AND ACROSS THE COMMUNITY A GOOD LIFE GOAL FOR A BETTER WORLD “

EMPLOYEE BENEFITS

“A Good Life Goal for a Better World” is the name of the project Galdi developed and started in 2020 to raise awareness of the sustainability issues at the core of the UN’s 2030 Agenda among staff. The project was successfully completed in Through2021. the project, Galdi called on all the Group’s employees (in Italy and abroad) to reflect on sustainability, encouraging them to put in place concrete actions - for each of the Sustainable Development Goals - which were then shared with staff and put to the vote. The “challenge” involved both employees and their families, proving to be a good opportunity to address the issue of sustainability not only at work but also in daily life!

HELP POVERTYEND GOALSGOODLIFE1 HELP POVERTYEND End poverty in all its forms everywhere. 1 paycompaniesBuy3youdonateShare2abroadhomepovertycausesLearn1Actionstheofatandandwhatcanfromthatpeoplefairly Save,4 borrow and foropportunitieswagesDemand5responsiblyinvestdecentandall

36 2021 / GREEN REPORT REMOTE WORK MORE FLEXIBILITY FOR MORE EFFICIENCY: THIS IS OUR IDEA OF REMOTE WORK “ 2018 Following the introduction of “mobile workstations” and notebooks for staff members, we started a pilot project with a group of employees. GOAL: to introduce remote work in the company REMOTE WORK: 1 day a month Rules for remote work are introduced. REMOTE WORK: 2 days a month 2019

The Workinglevel.

company started using remote work in February, before mandatory Covid measures were taken at national

remotely, our Field Service Engineers were able to provide full support to customers. Remote work is extended. From September 2021: 4 days/month (1 day/week max.) 2020 2021 EMPLOYEE BENEFITS

and events

38 2021 / GREEN REPORT

di

companies,

to fill FROM COLLABORATION WITH SCHOOLS TO SOCIAL ENGAGEMENT, THE KEY WORD IS“SHARING COMMUNITY ENGAGEMENT GUIDED VISITS ON SITE COMPANY TESTIMONIALS (IN-PERSON AND ONLINE) PROJECTS FOR LOCAL SCHOOLS AND YOUNG PEOPLE

We have continued supporting schools, both in-person and online. We stayed connected with institutions and schools through online webinars and meetings, but also hosted tours at both our headquarters and at the GalVillage, a place

The sum allocated for the company’s Christmas party was donated to Share The Meal, a World Food Programme’s initiative. With this action, we secured 3,714 meals for conflictaffected families in Afghanistan

In 2021, too, we made donations to support a number of local and international causes. In 2022, we made a donation to the Italian Red Cross for relief efforts in Ukraine

The products for our Christmas gift baskets come from businesses engaged in social projects; moreover, all Galdi employees received vouchers to be redeemed for benefits on our online platform

The tables and chairs of the old canteen were donated to a local volunteer-led, first-aid charity

40 2021 / GREEN REPORT SOCIAL PROJECT

Galdi began collaborating with Sol.Co., a social cooperative which operates in the Treviso area and offers training and work integration projects for people from disadvantaged backgrounds.

In“2021,

OVERCOMING DIFFICULTIES, TOGETHER: THE PROJECT WITH SOL.CO.

The cooperation with Sol.Co. took the form of a training and support project, aimed at enabling users to autonomously operate and service their own machinery.

GOAL

To provide support and advice through training, in order to bridge the technical gap and enable Sol.CO. users to operate machinery and equipment

COMMUNITY ENGAGEMENT

42 2021 / GREEN REPORT SUSTAINABILITY PROJECT A PROJECT TO RAISE AWARENESS OF SUSTAINABILITY ACROSS BUSINESSES AND COMMUNITIES BY ASSINDUSTRIA“VENETOCENTRO

Several activities to develop awareness of sustainability issues in companies and the local area. This project brings together several stakeholders in the Provinces of Treviso and Padua, creating valuable networks across institutions, businesses and schools.

SUSTAINABILITY GROUP

COMMUNITY ENGAGEMENT

We support talented young people & help them unlock their potential! In 2021, Galdi participated for the second year running in a project involving students from local Technical Institutes promoted by Assindustria VenetoCentro. This year, the challenge launched by Galdi focused on: • developing an efficient cap orientation system • providing the most sustainable solution

CORPORATE SUSTAINABILITY PROJECT FOR SCHOOLS

For the sixth year in a row, we participated in the Sustainability Group, which connects businesses from different sectors and acts as a platform to share experiences and learn from each other with the goal of improving corporate sustainability strategies.

A platform for discussion and know-how exchange: sharing sustainability!

44 2021 / GREEN REPORT “ SUPPLY CHAIN AGREEMENT PROJECT SUSTAINABILITY ALSO MEANS SUPPORTING LOCAL COMPANIES IN OUR SUPPLY CHAIN Since 2020, Galdi has been involved in the Supply Chain productionaimedIntesaProgrammeDevelopmentbySanpaolo,atsupportingchains.

COMMUNITY ENGAGEMENT

CONFIRMING PROGRAM

4112232

The project is ongoing and is set to continue in 2022.

In order to support our supply chain, we signed a cooperation agreement in 2020.

This is a Supply Chain Finance program for advancing payment of receivables due from a customer (buyer) through a web-based platform, optimising cash flows and facilitating access to credit for suppliers.

The program benefits both suppliers, who can request advanced payment of their invoices to the bank, and customers, who can profit from an additional payment term extension, besides the one agreed with suppliers.

Suppliers invited to the presentation event Participants in the presentation event (69%) Interested suppliers Suppliers accepted in the program

46 2021 / GREEN REPORT SUPPLIERS171INTOTAL 158ITALY 13ABROAD Veneto 61 Lombardy 69 TrentinoFriuli-Venezia2 Giulia 3 Marche Emilia-Romagna1 16 PiedmontTuscany2 4 SUSTAINABLE SUPPLY CHAIN

both

Galdi continues to prioritise local suppliers, to support the area we operate in, and also to receive supplies as quickly as possible to optimally serve our customers.

VicenzaPadua10 11 Venice 1 Treviso 37 Verona 2 VENETO 61

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SAFETY CERTIFICATIONS

AND HEALTHY WORKPLACES PREVENTION OF WORK-RELATED INJURIES PREVENTION OF OCCUPATIONAL DISEASES

Galdi has received certification under the UNI ISO 45001:2018 standard, which specifies requirements for occupational health and safety management systems.

SAFE

TRAINING AND PREVENTION ARE KEY TO ENSURE OCCUPATIONAL HEALTH AND SAFETY “

Throughout 2021, Galdi held several events to raise awareness of workplace safety among production employees. We plan on holding similar meetings in the future too.

50 2021 / GREEN REPORT Again in 2021, our injury incidence rates were lower than the average for the sector (ATECO 28.2). INCIDENCE RATE102030405060700 20072008 2009 2010 2011 12012 2013 2014 2015 2016 2017 2018 2019 2 20 02 20 10152025303550 2017 22,47 11,11 10,87 2018 2019 2020 202110,0 *1000workersnumberofNumber*1000workersnumberofNumbercases/ofcases/of Average incidence rate for the 28.2)(ATECOIndustrycode

SAFETY CERTIFICATIONS FREQUENCY RATE SEVERITY RATE 1015202530354050 20072008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0,1 9 0,0,8 7 0,6 0,0,0,54 3 0,0,210 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 12020202 2021 Number of cases/ hours *1000000workedNumberofleavedays/hoursworked*1000

52 2021 / GREEN REPORT GREEN PACKAGING, FROM ORIGIN TO RECOVERY, THANKS TO CIRCULAR ECONOMY PROJECTS “ OUR SUSTAINABLE PACKAGING

END OF LIFE RECOVERY GABLE TOP CARTONS Made from 75% FSC-certified paper - a renewable source - from responsibly managed forests (FSC® and PEFC) Optimal shape for transport and storage 100% recyclable Resealable screw caps for optimal product protection Recovered cellulose fibres are converted into home and personal hygiene paper products Recycled polyethylene and aluminium residues are processed and used to make new products such as gadgets, household accessories and street furniture

In 2021, Galdi was granted Authorised Economic Operator (AEO) status, after Italian Customs officials conducted the relevant audits to verify Galdi’s fiscal compliance and financial solvency, also validating the knowledge, compliance with, and adoption of correct customs procedures.

54 2021 / GREEN REPORT AEOC AUTHORISATION CERTIFIES THAT GALDI IS A RELIABLE EXPORTER “ CUSTOMS AUTHORISATIONS

The commitment our company made in 2021 marks the beginning of a closer cooperation, based on RELIABILITY AND TRANSPARENCY, with Italian customs authorities.

complianceSimplified

The key requirements to obtain, and maintain, AEO_Customs status are indeed financial solvency, tax and customs compliance.

Easier tax compliance reporting Better planning, faster shipments and fewer delays

relationshipsImproved with Customs Customs transit priority thanks to verified customs and tax

procedurestransitwithin the EU

BENEFITS

2021 / GREEN REPORT INNOVATION, WELL-BEING AND SUSTAINABILITY: THESE ARE THE PILLARS OF THE GALDI VILLAGE, A PLACE TO FILL “ GALDI VILLAGE, A PLACE TO FILL

Official opening: March 2021

Galdi Village, a place to fill is the new green building located next to Galdi’s production plant. It was designed to be a hub to promote the wellbeing of our employees and of the community we operate in, to act as a networking platform for discussion and debate, and to host company and local events.

58 2021 / GREEN REPORT LEED® GOLD CERTIFICATION The LEED® Gold certification is one of the most Thebuildings.standardssustainabilitystringentfornewGaldiVillage, a place to fill, was designed with the future in mind, shaped by sustainability.well-beingemployeeand

CONSTRUCTION PHASE

Construction site operational plans were based on sustainable criteria with attention paid to workers Selected materials are high in pre- and post-consumer recycled content and low in VOC (volatile organic compounds)

Construction waste was disposed of by licensed waste disposal companies providing the percentage of recycled waste for each type of material

60 2021 / GREEN REPORT Here are some of the sustainable choices we made:

OPERATIONAL PHASE Reduction andmonitoringandofelectricitywaterconsumption Light pollution reduction Solar and PV panels for renewable energy production Electricity: 100% renewable energy

62 2021 / GREEN REPORT The initial in-depth analysis, including design choices and the selection of materials and systems, will now be followed by ongoing monitoring to make sure that the high standards achieved are maintained over time.

RETHINKING EMPLOYEE WELLBEING

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Galdi Village, a place to fill features spaces for the well-being of our employees, including relax and networking areas, a new Fitness Area, as well as “Galdi Bistro”, a new healthy and sustainable catering concept. The spaces are designed to be naturally lit, with large windows that offer a view of the garden and the surrounding landscape.

We believe that the high levels of mental and physical well-being enjoyed by Galdi employees are essential for a better quality of life and for a lively, dynamic and healthy work environment. The Fitness Area was designed with this idea in mind: a place to train the body and mind with rooms equipped for both individual workouts and group classes (e.g. Pilates).

COMMUNITY ENGAGEMENT AND EMPLOYEE WELLParticipation in the “Girls Code It Better” project to create a new Club in the Treviso area, with the goal of encouraging more girls into STEM subjects; Additional activities to foster the well-being of our employees (functional training, mindfulness class); Renewed participation in the Sustainability Project by Assindustria VenetoCentro.

GOALS FOR THE FUTURE

BEING •

66 2021 / GREEN REPORT ENVIRONMENTAL SUSTAINABILITY • Replacing lights in the production area and outdoor lighting fixtures with LED lights; • Expanding the area for the production of clean electricity; • Installing consumption meters for electricity, gas and water to monitor and optimize consumption.

la nostra storia sostenibile

68 2021 / GREEN REPORT Via E. Fermi, 43/B 31038 Paese (TV) Italy Tel.: +39 0422 482211 Fax +39 0422 482230

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